How to EASILY Rent Out Your Property

Do you ever have one of those days where you just want to drop everything and travel?

All you want to do is pack up your necessities, leave your job for a bit and hop on a plane.

But, what’s holding you back?

Finances, family or your home?

You can always make more money and your family will still be around when you return.

So, what do you do with your home?

Simple: rent it out!

Renting out your property gives you the luxury to keep your home, while being away. It’s the perfect scenario if you are looking to leave temporarily, but want to return.

PLUS – tenant’s pay a monthly rent, which can be used towards mortgage payments. It’s a win-win.

Here’s everything you need to know about how to rent out your property.

Why rent out my property?

Before jumping into your decision to rent your property, you need to ask yourself if renting or selling your home is more suitable for you.

This decision can be reached by evaluating your personal situation, finances and career. If you have decided renting is a more appropriate option, there are countless benefits to support your choice.

Renting your property gives you the advantage to own your home while the tenant pays monthly rent.

Typically, the tenant’s rent is used for monthly mortgage payments. This situation allows you to build wealth and equity without paying directly for mortgage. It is common for landlords to aim for a renting price for more than their mortgage payments, so they can make some extra cash.

In certain cases, this can work, however, be mindful of what other surrounding homes are doing.

Owning a home is a huge investment and has the ability to build wealth. Renting out your home can help get you a jumpstart on your investment funds. By renting out your home, you have the ability save money and upgrade to a larger property or save up for retirement.

And obviously, when you rent, you have the option to return back home. This is appealing to homeowner’s that have to suddenly relocate for their career temporarily. If they are wanting to return to their home, renting out their property is financially and economically smart.

Where to start

Here are the steps on how to easily rent out your property:

1. Find a good tenant

To start this process on the right foot, you will need to find a good tenant to rent out your property.

By carefully reviewing candidates, you will feel more relaxed and comfortable with your decision.

You do not want to choose someone blindly without conducting a background check.

Knock on wood, you don’t encounter someone with question history. This could but you, your family, and home in danger.

To market that your home is available for rent, advertise in newspapers, online, or spread the news through word of mouth to friends, family or coworkers.

By being visible online or in print, you are increasing your likelihood of being seen. Sharing this information word of mouth is also an effective strategy.

Good news travels fast and that could lead you to a potential tenant.

Nonetheless, you need to find a trustworthy, reliable and accountable person to rent out your property. Looking for these qualities in interested candidates will make your final decision easier.

Once you have several potential tenants, you can begin your interviewing process.

Ask interested candidates to fill out a form with the following information:

Full name

Date of birth

Phone number, email address

Current employer (name, supervisor, hire date, contact information)

Salary

Emergency contact information

List of all potential renters

Previous landlords

References

Release of information statement

Signature

The information requested above are necessary items to know. This will give you a better idea of who they are, their financial stability and presents you the opportunity to ask questions from an unbiased resource.

Having your interested candidates sign off on this document also holds them accountable and symbolizes they have read over your written lease and legally accepts your terms.

If you have a signed authorization, you are legally allowed to ask for the Social Security Number, so you can check their credit reports and conduct a criminal background check. **Make sure the company is accredited by the Better Business Bureau if pulling credit reports**

If you choose to conduct your own background check, be sure to follow this checklist:

a. Pull credit reports

This will give you a better idea of their spending habits, accountability and overall financial stability. Credit reporting agencies such as Equifax, Experian or TransUnion can assist you as long as you follow the guidelines of the Fair Credit Reporting Act (FCRA).

b. Check criminal background

You want a tenant with a clean background so you, your property and belongings are not damaged. Research state and local records online to evaluate their history. If you need extra tips and assistance, landlord.com has helpful advice on conducting tenant screening.

c. Contact references

Have potential tenants provide references such as previous landlords, employers or close friends. This will give you a better idea of how they are perceived by their peers.

2. Determine how much to rent

To accurately set a renting price, you will need to do some research. Start by checking with local newspapers, online realtor websites such as Craigslist, Zillow, or Trulia. Or, you can look at neighborhood rental signs to get an idea of how much to charge for rent.

You need to price your property’s rent accordingly by comparing it to similar homes in the area.

It may be lower than your mortgage payment, but, if you need to rent your home, it needs to be set at a comparable and attractive price. You need to be accommodating, yet competitive by offering a fair renting price, along with a modernized and up-to-date home.

If you have a high renting price compared to other homes, people will be more attracted to competing properties.

As for the security deposit, this is entirely up to you. You can choose the amount you want from your tenants.

However, some states and cities have limitations.

Before deciding on an amount, check with your local authorities. A safe and common approach is to set this value to equal one month’s rent, and maybe some, depending on how much you trust your tenant.

Once you have received their security deposit, it is highly advised to put it in a separate bank account. This will eliminate any financial confusion on your end and the money can be returned easily to the tenant after the lease ends.

3. Protect your rights with a lease

Having a written lease will protect you from any misunderstandings. This written document will address all responsibilities and duties that each party oversees.

A written lease will also limit confusion and clarify any logistical questions a tenant may have.

The written lease should also include your expectations and obligations your potential tenant should abide by.

As a landlord, you will need to provide these factors, along with suitable housing, fair rent and insurance options for renting tenants.

However, this is a trial and error process, you will change and adapt to different styles over the course of time.

Hand over the keys

Voila! You have done it.

You have found the perfect tenant, signed the lease agreement and collected first month’s rent.

You are ready to hand over the keys and start your new journey of landlord-ship.

Although your researching and evaluating process has come to an end, a whole new set of responsibilities are about to kick in.

Remember that you are their landlord. Meaning, it is your responsibility to make sure rent is paid on time; tenants are aware of late fees; tenants know how to contact you about repairs or other maintenance work; and the home is kept in good condition.

Once you have acknowledged these new responsibilities, you are able to continue your life elsewhere.